The firm has a net borrowing cost of 3.0% after tax. If assume all aspects (drivers) of operations are similar to the current year, what is the expected sales growth next year? and forecast next years income statement (4 points)

Question 5 (15 points) The following are summaries from financial statements for the warehouse retailer, H. Inc. for fiscal year ending January 29, 2020: Financial assets Operating assets Summary Reformulated Balance Sheet, January 29, 2020 (in millions of dollars) 2020 750 43,000 2019 450 38,000 Sales Core operating expenses Core operating income Taxes allocated to core operating income Financial liabilities Operating liabilities Common equity 43,750 38,450 Summary Reformulated Income Statement, Year Ended, January 29, 2020 (in millions of dollars) Core operating income, after tax Unsustainable operating income, after tax Operating income, after tax 2020 2019 4,000 2,100 13,500 12,700 26,250 23,650 43,750 38,450 82,000 72,500 9,500 3,400 6,100 250 6.350 Where relevant, make all calculations for 2020 with beginning-of-period balance sheet numbers in the questions below